Ukip MEP Jonathan Arnott said it is "obvious to anybody" that Woolfe can no longer be a candidate.
"This really portrays Ukip in an appalling light," he told BBC2´s Daily Politics programme.
"The people who have worked hard for this party, year in, year out, they expect better of their MEPs than what has been seen over the last 24 hours."
But any moves to prevent Woolfe - the Ukip migration spokesman - standing in the leadership election will only exacerbate the bitter divisions within the party.
There was anger when he was barred from standing in the last election after it was ruled that he had submitted his nomination papers 17 minutes late.
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